-BOJ leaves rates steady, finalises quake relief facility.
Global Banking News-April 29, 2011--BOJ leaves rates steady, finalises quake relief facility(C)2011 ENPublishing - http://www.enpublishing.co.uk
Global Banking News - 29 April 2011
The Bank of Japan (BOJ) has said that it has decided to keep its unsecured overnight call loan rate target unchanged in a range of 0.0 percent to 0.1 percent.
The central bank is expected to downgrade its forecast for real gross domestic product growth to 0.8 percent, from the 1.6 percent it predicted in January due to supply problems caused by the March 11 earthquake.
The BOJ board has also finalised details of a special facility announced earlier this month to ensure funds to the regions hit by the earthquake and tsunami. Under the programme, the central bank will offer JPY1tn in one-year loans at a 0.1 percent interest rate to financial firms with branches in the affected areas.
The central bank's policy board has further decided that each participating bank can borrow a maximum of JPY150bn of funds. Applications for the funds must be made by the end of October 2011. The board has also agreed to broaden the range of financial assets it accepts as collateral in a bid to ensure adequate capacity of financial institutions in disaster areas.
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